recapture of education credit

Did you make the original error? Has the IRS already made the correction. It is really worth

the cost of an amended return?

I did not make the error. It is on box 4 on the statement

Did the taxpayer claim an education credit or tuition and fee deduction in the prior year that the adjustment is for?

Yes, the taxpayer did get a refund of the tuition that she paid the year before.

You will need to know if the taxpayer claimed an education credit or the tuition and fees deduction in the prior year.

If the taxpayer took an education credit, you will have to refigure the credit for that year as if taxpayer had received the refund of tuition in the prior year. The original credit minus the refigured credit is the amount that has to be recaptured. The recaptured amount is added to tax in the year the tuition refund was received. The recapture tax is included in Line 44 of Form 1040.(The recapture amount and "ECR" is entered in the space next to line 44.) The original return from the prior year does not change.

If the taxpayer took the tuition and fees deduction, you have to refigure the deduction as if taxpayer had received the refund of tuition in that year. The original deduction minus the refigured deduction is the amount to be recaptured. The recaptured amount is added to income in the year

the tuition refund was received by entering it on "Other income" line on Form 1040. The original return from the prior year does not change.